As our clients near the end of the year, there are many things they can do to prepare themselves to receive accurate W2s.
There are many items to review, however, if you consider each item systematically it doesn’t take long to complete. The following list is a great place to start to ensure that:
- Employee information is checked for accuracy – name, social security number, address, etc.
- Independent contractors and their payment totals are accurate.
- 401(k) or other retirement plan(s) contributions and match amounts are accurate, and double-check wage items that should be excluded in this calculation.
- Double-check who, if anyone, went over the FICA Social Security wage minimum.
- Unemployment reports accurately reflect all employees were paid in each quarter.
- You check to see if you have employees using a company car for personal use.
- Employees, if applicable, were paid disability during the year (3rd party sick pay).
- Any cash bonuses, or issued gift cards, have been accounted for and taxed appropriately.
- You don’t have any employees who haven’t had any withholdings taken during the year, and that they have been regularly reviewing their stubs so they know their gross to net totals.
- Employees don’t have any fringe benefits that should be taxed.
- You didn’t issue any manual checks that your payroll company may not know about.
- Your shareholders process their health insurance so it appears on their W2.
This list is not all inclusive but touches on key points and not all items apply to everyone, but you can be sure all employers will need to double-check at least one item on this list.
Chances are, your payroll company is already asking for and reviewing each item on this list. Helping them helps you to provide accurate W2s to your employees in an efficient and timely manner.
Happy Holidays and a very joyous New Year to you all.